RBA Leaves official interest rate at historical low

Unsuprisingly, the Reserve Bank of Australia has once again decided to leave the official cash rate on hold at 2%.

The decision marks the 10th consecutive month that the board has opted to leave the cash rate untouched.

Strong economic data, including stable employment and a bounce back in consumer sentiment, provided the Reserve Bank of Australia with no reason to change the official cash rate.

The Australian Bureau of Statistics shows the unemployment rate continues to remain relatively stable, while research conducted by CoreLogic shows property values continue to rise.

Over the month of February, property prices climbed 0.5% across the combined capital cities, with Hobart, Adelaide and Brisbane the standout performers.

However, this spate of positive data gave the Reserve Bank of Australia no reason to change the current monetary policy setting. But while rates were once again left onhold, future cuts can not be ruled out. There continues to be a level of volatility in both oil prices and the share market. If this market volatility starts to have an impact on consumer and business confidence, we may see the board react to another rate cut. Some analysts are already pencilling in another rate cut before the end of the year.

Regardless of what happens with the cash rate in the future, with interest rates at record lows, makes now a good time to buy, invest or upgrade.

For anyone who isn't happy with their current home loan provider or feels as though they could get getting a better deal, now is also a great time for property owners to review their home loan and make sure they are still in the right product for their needs.

If you want to learn more about your home loan options, call (03) 8602 6777 or send us an email enquiry admin.melbourne1@mortgagechoice.com.au.

 

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